Transition Planning

Every business will go through a transition of some kind – the question is, will it be a voluntary transition, or an involuntary one?

As a business owner, you will need to decide when will be the right time for you to step out of, or move on from, the family business.  Then there are the details of how that transition will happen.  Some call it succession planning – and that term works, too.  We call it transition, because not everyone is appointing a successor.  You might be simply closing the business, or merging, or some other form of change.

For some reason, the mention of death causes many to shrink back and claim, “That’s morbid”.  But when you own a business – particularly a family business – there’s nothing like that about it.  You’re being wise, responsible, and incredibly helpful to your family members (and business partners) when you face up to the challenges ahead – even if they are many, many years off in the future.  Perhaps you have children or other family members who wish to continue the business after your death. You’ll want to maximize your business value when you transfer.  However, with income, gift, and potential estate taxes, there’s some planning required so that your family doesn’t end up having to sell some (or all) of the business assets to pay those taxes, perhaps with little or nothing left over to those you wished to help.

Transition planning isn’t simply about making sure your business moves on, or closes in the way you desire.  It takes into account the varying aspects of accounting, taxes, family agreements, financial needs, and business continuity.

We help businesses get ready for life-changing events without having to go through the stress and hassle.